Tag: how to invest in space tech

Top 4 Ways to Invest in Space Tech Companies

Human understanding of the universe in its unimaginable infiniteness only has room to grow.

Exploring unknown reaches of outer space will only accelerate in the coming years.

Space technology will improve exponentially. Space industry global revenue is expected to reach $1 trillion by 2040. [1]

The relatively untapped arena of outer space provides investment opportunities for not only large financiers, but small investors as well.

How to invest in space exploration

In an effort to keep track of the space tech market, Espresso Insight produced a compiled list of over 200 organizations building space exploration technologies. Get the Space 200 list below.

the Space 200 Download (its free)

4 ways you can invest in space technology companies:

1. Angel Invest

Become an angel investor and fund private companies and pre-IPO startups.

Platforms like Forge provide retail investors a gateway to pre-IPO companies.

space tech investing
source: NASA

Many space tech companies on the 2020 Espresso Space 200 are private companies and raising or have raised venture capital in the past.

2. Exchange Traded Funds

Another option is investing in an Exchange Traded Fund focused on space exploration.

A few popular ETFs that focus on space tech include:

  • ARK Innovation ETF (ARKK)
  • SPDR S&P Kensho Final Frontiers ETF (ROKT)
  • Procure Space ETF (UFO)

All of these ETFs may be purchased from TD Ameritrade, for example.

3. Indirect Investing

Invest in publicly traded companies that have stake in space.

Google’s parent company, Alphabet, for example, has invested in SpaceX.

By buying shares of Google, you are indirectly gaining exposure to SpaceX.

4. Publicly Traded Businesses

There are a good number of publicly traded companies that provide products and services directly related to aerospace, rockets, and futuristic space exploration.

Investing in these publicly traded companies is a good way to gain exposure to a larger more established organization that’s also doing exciting things building space exploration systems and technology.

There are quite a few of these on the 2020 Espresso Space 200, but a few are listed below.

  • Boeing Co. (NYSE: BA)
  • Lockheed Martin Corporation (NYSE: LMT)
  • Northrup Grumman Corporation (NYSE: NOC)

sources:

  1. morganstanley.com/ideas/investing-in-space